China's Clothing Exports Are Frequently "Robbed".

Export is "grab single"

This year, clothing Exports showed signs of warming, according to China Spin In January 2014, China's textile and apparel exports reached 28 billion 620 million US dollars, a record high, an increase of 16% over the same period last year. It is estimated that the export growth of China's textile industry will reach 10% in 2014.

However, reporters learned that although export data were getting warmer, the export profits of garment enterprises declined.

"Compared with the same period last year, an increase of around 10% is expected." Yesterday, the Chongqing women's clothing brand "sage and soft" official told the business daily reporter, the order quantity has gone up, but the export profit has not been originally high. "In the past, the profit of the foundry can reach at least 15% of the processing fee, but now it has been reduced to less than 10%."

Yuzhong District Association Xie faction Clothes & Accessories Qu Lunchuan, chairman of the association, told reporters that there were twenty or thirty enterprises in the association in the previous year, but they had been reduced to seven or eight last year.

Yesterday, the reporter contacted the Fujian Shishi Sonoma undergarment factory to do the extra orders. Wang Yuzhen, the manager of the factory office, also confirmed to reporters that the profits of the foreign orders are basically kept within 10%, otherwise, the price will be met once the price is raised.

Encounter strong opponents

The "grab sheet" by Wang Yuzhen, a clothing factory in Shishi, Fujian, refers to the transfer of foreign orders to Turkey and Southeast Asian countries.

Compared with China's Micro growth, another rival in clothing export industry is showing signs of improvement. According to the latest data released by the Istanbul textile and Garment Association (ITKIB), Turkey exported $17 billion 300 million worth of clothing to 203 countries and regions in 2013, an increase of 8.3% over the 2012 figure of 16 billion 300 million dollars. Last year alone, socks exports amounted to 1 billion 400 million pairs, with a total value of US $1 billion 100 million, an increase of 10.5% over the 1 billion 200 million double in 2012.

Yesterday, Tang Qiang, the famous brand leader, also said that he would pick up orders from Europe and America at the very beginning, but as Turkey and other countries lowered their prices, they began to take orders from Russia and Hongkong.

Chen Guoqiang, vice president of China clothing association, told reporters that in the past two years, some international orders have gradually shifted to Turkey and Southeast Asia. For instance, Adidas and Nike have gradually closed some factories in China, transferring their capacity to Vietnam, Burma and other places, and even domestic enterprises have begun to shift. For instance, since the second half of 2010, customers have transferred some of their clothing capacity to Bangladesh.

"There are three main factors." Chen Guoqiang introduced the export of Turkey's clothing to the EU as an example, such as tax incentives, low cost of raw materials and manpower, and increasingly mature industrial chains. If Turkey is close to Europe and its freight is low, it can enjoy preferential tax treatment and even tax exemption from EU countries. In recent years, some large enterprises have become a holding company, which can produce from the fiber production to the final product, forming a very strong and complete industrial chain, and the price of its products has strong competitiveness. At present, the EU market has become a strong opponent of China's clothing exports.

Sun Liwu, an analyst at Zhuo Chuang's information and textile and garment industry, also said that at present, labor costs and tax preferences have become the biggest competitive advantages of these countries and China. The domestic garment enterprises are at least 2~3 times of that of Thailand and Vietnam.

Enterprises should increase their capability of independent design

Chen Guoqiang, vice president of China clothing association, said that the "low cost" advantage is gradually disappearing. In addition, domestic enterprises are faced with problems such as widespread foundry and inadequate brand. Take Chongqing as an example, there are currently more than 20 export garment enterprises, but almost all of their export products are OEM for foreign brands.

In addition to human cost, the supply chain, production time, style and so on will affect the cost and competitiveness of clothing. Chen Guoqiang said that the more low-end products, the greater the impact of fluctuations in labor costs, so clothing enterprises need to further enhance the independent clothing brand research and development, design, production level, from OEM (foundry production) to ODM (original design manufacturer) transformation, thereby enhancing profit margins.